Heather Roy

Heather Roy's Diary

The Last Political Chapter

I wrote my first Heather Roy’s Dairy on 9 August 2002 and have sent one out most Fridays since then. Looking back, they are a great record of what was happening at the time and the issues I was involved with. Hon Hugh Templeton advised me that I should always keep a diary – so that I could write a book when I felt the time was right. It was great advice, but this is the closest I got.

Parliament adjourns this week for the election period. I am very proud to have participated in New Zealand’s 47th, 48th and 49th parliaments and I am very pleased that this final diary finishes my Parliamentary time on a high note.

Last week was a big week. My Voluntary Student Membership Bill passed its third reading last Wednesday. It is the culmination of a debate that has raged on campuses for the best part of two decades and as of 1 January 2012 students will no longer be compelled to join a Student Union in order to study. After prolonged delaying tactics by Parliament’s opponents of the Bill I was delighted that it finally passed on the last members day of this Parliament, and with an hour and a quarter to spare!

My third reading speech can be found here, the Parliamentary video of my speech can be found here. A Bill doesn’t become law until it receives the Royal assent and The Education (Freedom of Association) Amendment Bill received this last Friday.

My valedictory statement was last Thursday and can be found here, the video here. I was pleased to have many of my family members present, as well as those who have had a profound effect on my Parliamentary career.

My final thanks go to the readers of my diary. When I made mistakes you told me about them and I’ve been very grateful for the feedback (especially the positive!) and comments many have sent back to me. As I said in my valedictory speech, politics is the contest of ideas and no-one has a monopoly on these. If we are to grow as a nation we must always be receptive to a wide range of opinions and new ideas should be encouraged, examined, researched and pursued according to their merit. Most of all, thank you for taking the time to read my thoughts.

Lest We Forget

My final Lest We Forget is a personal one from my valedictory speech:

As I look around the four walls of this chamber for the last time I’ll take particular note of the battlements: the 12 carved circular wreaths around the balcony and the 18 carved plaques on the wall panels, representative of battles and places where New Zealand troops have fought and served. They remind me of the reason I came to this place – to continue the fight for our freedoms that our forebears began, for a prosperous nation, one where we all have the same opportunities. Our freedoms are hard won with many New Zealanders having paid the price with their lives. Freedoms hard won, but so easily eroded. I have been honoured to serve my country in this House and I hope those in the 50th Parliament and beyond will also be reminded of their responsibility to uphold our freedoms.

I wonder, Mr Speaker, if I could make a request before I leave this chamber. There are some battlements missing from our walls: the first Gulf War, Afghanistan and our recent peace keeping missions are not represented despite the fact that our Defence Force personnel have participated with the same courage, commitment and distinction as those who served before them. They too have suffered injury and, in some tragic cases, loss of life in their quest for freedom around the world on our behalf. I know my fellow soldiers would be touched by such a gesture and it would seem entirely fitting.

ENDS

Valedictory Statement

Hon Heather Roy Valedictory Statement; Parliament; Thursday, September 29 2011.

Mr Speaker,

My introduction to politics came at the tender age of 20 in 1984.  They were exciting political times - Sir Robert Muldoon had called a snap election and Sir Robert Jones had launched a new party - the New Zealand Party.  For the first time I had a flicker of interest in what was going on in the political arena and Sir Robert Jones' youngest candidate was campaigning for my vote.  I liked his politics.  The freedom and prosperity message appealed, but I liked the candidate even more.  He got my vote that year - albeit a special vote because I hadn't enrolled - and I got him.  A vote is a precious thing, as is a husband and I think it was a fair trade.

12.5 percent of the population thought that a free and prosperous nation was something worth supporting in that 1984 election.  Under MMP that would have been around 16 seats for a Party that believes in freedom of market, mind, body.  I still believe fervently in those same ideals.

My next political encounter was many years later in 1996, the first MMP election when ACT was established as a political party.  Again, my involvement was through my husband Duncan.  He was electorate chair in Aoraki and I helped with pamphlet deliveries, hosting visiting MPs and organising meetings as you do.  In 1999 I was persuaded to stand.  I thought I was flying the flag.  Sir Roger Douglas and some of the party faithful decided I should be making a serious tilt at parliament and gave me an electable list position.  Luckily, with five small children, I didn't get in that election but politics gets in your blood.  I stuck with it and was elected in 2002.

My early Parliamentary life seemed destined for a time to be marred by the curse of mistaken identity.

When Deborah Coddington and I came to parliament in 2002 the then Speaker, Jonathan Hunt, couldn’t tell us apart.  Deborah – tall, dark and statuesque - and I (none of those things) just seemed to confuse him every time we stood to ask a question or speak.  It probably didn’t help the situation when we turned up to Parliament one day wearing men’s suits in response to his comments that the women in the House were dressing too scruffily.  So sometimes I was myself, sometimes I was called to speak as Deborah Coddington and once as Deborah Roy.  We eventually got our identities sorted out with the Speaker over a bottle of his very nice red wine.

Then there was the case of the swapped Bellamy’s bills.  Eric Roy, who had not returned to parliament when I arrived in 2002, was receiving my bills in Invercargill and I was getting his much smaller bills.  I recognised the problem when I was charged for the baking of a whole trout which I had apparently caught myself and supplied to the Bellamy’s kitchen.  Much to my father’s dismay I am no trout fisherwoman.  I rang Eric who complained about the amount I’d been spending and that he’d been asked to pay but we agreed to swap bills and sort the whole thing out when I was next in the south.  We duly did so and a Southland Times photographer kindly immortalised the moment for us.  And just for the record – despite constant speculation, Eric and I are not related – not brother and sister, father and daughter, second cousins twice removed and I’m not, as Eric once jokingly told a journalist, his love child.  We are however friends.

Finally, an on-going but pleasant mix-up usually begins with the comment “you’re from the south aren’t you?” I am originally, as it happens, but I know as soon as I’m asked that question the person thinks I’m former National Party MP Katherine Rich.  Clearly it is the healthy but pale southern complexion we share that causes the confusion!  Or perhaps it is that we share the same views on many issues.  Katherine, in her valedictory speech said that “Being an MP is not a job; it is a life. Political service is all-consuming, and the New Zealand public deserves nothing less.”  She is quite right, but the all-consuming is tough on families and I, like others, owe mine a lot.So, once my identity crises had been dealt with, I was able to get down to work. Most of my first term was under the watchful leadership of Richard Prebble.  His aim, he said, was to get us to Ministerial level by the end of our first term.  That meant being thrown in the deep end and is undoubtedly the best way to learn; like an apprenticeship of sorts – there was no namby pamby breathing through your nose for ACT MPs!

During his time in parliament, Richard Prebble left many legacies to the country.  Those I’ve personally benefited from most are his ‘Prebbleisms’: words of wisdom best adhered to or taken notice of if you know what’s good for you.  I frequently pass these gems on to others.

Amongst his best are:

“If you can’t say it in two minutes it’s not worth saying”.  This is true, I've discovered, of every conceivable topic.

“Don’t be scared of making mistakes.  MPs who don’t make mistakes aren’t doing their job”.  This was either given as advice to take some risks or as an unspoken reassurance that although you’d stuffed up, it probably wasn’t going to cause the sky to fall in.

“In Politics the highs are so high and the low’s so low”.  The highs include successes like the Voluntary Student Membership bill, and demotion from your Ministerial Portfolios rate amongst the lows.  Richard claims the highs always make up for the lows and in this he was absolutely right – no ifs, no buts, no regrets.  There is nothing like a solid political win.

And as to the truth or otherwise of this one – I’m about to find out.

“Keep in touch with the friends you have before politics because you can’t tell if the ones you make in politics are real friends or not until you leave”.  I think I've made many friends in my time here and established many respectful relationships with those across the political spectrum. I'm hopeful most will stand the test of time.

The apprenticeship served me well for my time as an MP.

There is nothing like coming up against a good Minister, while in opposition, to teach you the ropes.  Several Labour Party Ministers taught me valuable lessons about how to handle issues – although their aim was generally to tell me nothing.  Parliamentary Questions become your friend, as do the Official Information Act and the Ombudsman.

ACT battled for 12 years in Parliament before we formally became part of the Government.  I look back at the many talented and hardworking ACT MPs before me who would have been great Ministers.  Ken Shirley and Stephen Franks taught me by example that principles are important and sticking to them results in consistent policy gains.  Had they had the opportunity to become ACT Ministers, both would have made a real difference to the lives of Kiwis.

But in politics timing is everything and I found myself in the right place at the right time to be appointed to a Ministerial post with responsibility for Consumer Affairs, Associate Defence and Associate Education after the 2008 election.  Turning ACT policies into reality has been our big win.

School Choice is on the agenda, Aspire Scholarships for those from low income homes and a review into Special Education were big projects I was proud of leading.

Among my Defence highlights was participating in the Defence Review.  I continue to believe a strong Reserve Force will give the NZDF greater flexibility and capability and hope there will be real focus on this for the future.  My Companion Studies on New Zealand’s Defence Industry and Voluntary National Service raised interesting proposals for NZ Inc. and I would be very sorry if this work wasn’t useful as a base for future thinking.

Alongside Rodney Hide’s Regulatory Standards work and legislation, the Spending Cap (People’s Veto) Bill and Local Government changes I think ACT supporters and voters can be satisfied that our policy wins were significant.

Consumer Affairs is a great portfolio because it potentially covers everything.  As Minster I got letters about electricity, cell phone providers, credit services, suggestions on how to improve the design of men’s trousers and enquiries about how to deal with competitive tearooms on bus routes, but the most frequent theme was the price of milk.  I initiated and led the review and amalgamation of consumer law – the Consumer Law Reform project.

The moment I became the Minister I seemed to find myself in unusual Consumer Affairs situations: a salesman trying to sell me an extended warranty who only gave up after I told him that I personally was responsible for the education campaign to say they gave no better protection than the Consumer Guarantees Act – he’d just told me it was a crock – seeing for myself how an EFTPOS machine strategically placed on scales weighing fresh produce adds significantly to the price and most alarmingly being checked into an already occupied upmarket Auckland Hotel room complete with a Spanish speaking porter called Manuel doing a luggage swap in front of me.  If I ever decide to write a book there is plenty of material.  The working title will be "Consumer Traps: Beware the Manuel Factor".

Like my fellow retiring colleagues I have been honoured to have been elected to this House, to speak on behalf of the many Kiwis who have entrusted their vote to the ACT Party and, sometimes, to have my personal views on conscience issues heard.  There is nothing like being a Minister and getting things done.  Serving one’s country in this way is a rare and special thing and I thank those who over three elections have given me the opportunity to do so on their behalf.

Politics is the contest of ideas.  Situations change, people's attitudes change and the relevance of policies changes.  In order to keep up and for parties to remain relevant to voters, it is imperative that new ideas are encouraged, examined, researched and pursued according to their merit.  I'd like to think we have a Parliament that welcomes the contest, but I have been disappointed by the lack of courage to tackle entrenched problems with innovative solutions and a refusal often to even engage in reasoned debate.  Frequently, these issues only see the light of day as Private Members’ Bills.  On the very slim chance that a space would open up on the Members’ Order Paper in the past year, I drafted a Bill to allow nuclear propelled ships to once again visit New Zealand waters.  Our current policy is a relic of a bygone era with no relevance to modern life and is holding our country back in so many ways.  People will happily expose their bodies to the nuclear materials such as X-rays but won't even contemplate having a vessel propelled by nuclear power in a New Zealand harbour.  ACT has been the only party in my time here to want to engage in a debate that isn't dominated by hysteria and deliberate confusion.  The same is true regarding the youth minimum wage, education funding following the child and so many other issues.

Sir Roger Douglas personifies the contest of ideas.  He is a reformer and our Parliament has too few of his ilk; those who think out-side the square and tackle issues from a solid, principled base.  His endless optimistic pursuit of solutions to the really thorny problems our country faces is truly inspiring.  He is a numbers man and the numbers are usually explained on a serviette or in detail on a whiteboard.  Sir Roger says politics is all about numbers although now of course he's talking about different numbers - those that win a policy battle with a majority.  He's right, but politics is also about people and I have appreciated hugely his mentoring, his friendship and his unwavering support over many years, especially the past three.

There are a few things that I believe would make our Parliament work better and I hope the Constitutional Advisory Panel set up to conduct a wide-ranging review of New Zealand’s constitutional arrangements will give serious consideration to a 4 year Parliamentary term and have a discussion on the appropriate size of Parliament and the Executive, given the strong suggestion by Kiwis in 1999 to have fewer MPs.  I believe we need a mechanism to hold our Executive and Parliament more accountable – in other countries this is achieved with an Upper House.  And a position I have reached after being involved personally in a number of conscience votes is that referenda on conscience issues is worthy of serious consideration.  I’m not convinced that 120 MPs – or 122 currently – are any better placed to make decisions on issues of conscience than the adult population.

There are always a huge number of thank yous to make on occasions such as these.  I will be saving most to give in a more personal way.  However I would like to acknowledge and thank those who work tirelessly to make Parliament tick and to make life easier for MPs: the Clerk’s Office, Parliamentary and Ministerial services, the library staff, the messengers and especially the security staff who always ask how my TF training is going.

And I’d like to give a collective vote of thanks my hard working and loyal Party members who helped me get elected, then re-elected in the first place – the Aoraki team from 1996-2000 and my Wellington based teams in Ohariu and Wellington Central more recently.  I would like to specifically thank Dave Moore for his invaluable support.

To the ACT Parliamentary team past and present – heartfelt thanks for a job well done.  Our successes are your successes because of your commitment to our shared cause.  I also want to thank my loyal and supportive Ministerial team.  We had the some trying times as all do, but much more often we had the best of times.  You helped me work to my potential as a Minister and without you I wouldn’t have achieved half of that I did.

Finally, my family.  To Duncan, Johnny, Barbara, Penny, Finn and Jack. Thank you for your love and support, putting up with the constant phone calls and my frequent absences.  I hope that being around a lot more isn’t going to suddenly cramp your style, but I for one am looking forward to that enormously.  And when my mother calls for a chat, she will no longer have to end our conversations with “Well, just don’t work too hard”.  She has not set me a good example in this regard.

I have a good friend who reminds me that there are plenty of beaches to walk on and plenty of wine to drink.  Wise advice I intend to take. There will still be a few boundaries to push I suspect but perhaps at a more sedate pace!

In my maiden speech I noted that I was the 80th woman to have been elected to this Parliament.  I asked the Parliamentary library to calculate for me how many had left before me.  It turns out that I am also the 80th woman to leave this Parliament.  I have taken from this that the time is right for me to move on to other things – not a moment too soon, not a moment too late.  Timing in politics is everything.

As I look around the four walls of this chamber for the last time I’ll take particular note of the battlements: the 12 carved circular wreaths around the balcony and the 18 carved plaques on the wall panels, representative of battles and places where New Zealand troops have fought and served.  They remind me of the reason I came to this place – to continue the fight for our freedoms that our forebears began, for a prosperous nation, one where we all have the same opportunities.  Our freedoms are hard won with many New Zealanders having paid the price with their lives.  Freedoms hard won, but so easily eroded.  I have been honoured to serve my country in this House and I hope those in the 50th Parliament and beyond will also be reminded of their responsibility to uphold our freedoms.

I wonder, Mr Speaker, if I could make a request before I leave this chamber.  There are some battlements missing from our walls: the first Gulf War, Afghanistan and our recent peace keeping missions are not represented despite the fact that our Defence Force personnel have participated with the same courage, commitment and distinction as those who served before them.  They too have suffered injury and, in some tragic cases, loss of life in their quest for freedom around the world on our behalf.  I know my fellow soldiers would be touched by such a gesture and it would seem entirely fitting.

Lest We Forget.

Freedom For Students At Last

Students will finally be given the same rights as every other member of society with the passing of the Education (Freedom of Association) Amendment Bill making membership of Students’ Associations voluntary for all students, ACT New Zealand Tertiary Education Spokesman Hon Heather Roy said today.

“I am absolutely delighted that tonight Parliament has voted to give students freedom of association, it has been a long time coming.  The debate over compulsory student membership has been raging for almost two decades and ACT’s Bill has been in the House for over two years,” Mrs Roy said.

“Students are the only people who can be forced to join an organisation against their will.  Well no more.  My Bill, which passed its third reading tonight, will ensure that from 1 January 2012 all students are free to choose whether or not they join a Students’ Association.

“Compulsory student membership has been a disaster.  Many Students’ Associations have a track record of fraud, financial mismanagement and of student politicians misrepresenting students to push their own political barrow.  Sadly this comes as no surprise; students who don’t like what their association is doing have had no choice but to remain a member and continue paying their levy.

“However, I purposely devoted part of my speech in the House this afternoon to focussing on the future and suggesting how Students’ Associations can thrive under voluntary membership.  I am confident that the Students’ Associations that provide good quality services and actually listen to their members will enjoy every success over the coming years,” Mrs Roy said.

Free At Last

Hon Heather Roy Third Reading Speech; Education (Freedom of Association) Amendment Bill; Parliament; Wednesday, September 28 2011.

Mr Speaker,

It gives me great pleasure to lead the debate on this third reading of the Education (Freedom of Association) Amendment Bill.  Voluntary Student Membership has been a test of patience and many thought this day might not come at all in this Parliamentary term.

Others hoped it would not and around 0.1 percent of New Zealand's 400,000 or so tertiary students protested against the bill earlier this week, along with a handful today on Parliament’s lawn.  I encourage Kiwis to be actively involved in their democracy because freedom of speech and freedom of action are important rights that should not be denied.  There is a certain irony that these rights have been used to oppose another fundamental civil right - freedom of association for students but none-the-less I staunchly defend these students’ right to do so.

Opposition to issues is frequently noisy, while support is often silent.  This post of support from a Canterbury University student appeared on my Facebook page yesterday: "I feel strongly about the freedom to choose and I know many others that feel the same.  Please also remember to hear the silent voices of those of us who do support you.  We don't need to make a huge ruckus out of it because we're sensible people supporting a sensible bill".

Voluntary Student Membership means students, from 1 January 2012, will no longer be compelled to join a Student Union before they are allowed to study at a tertiary education institution.  They will instead be free to choose whether or not they join an organization that as an Incorporated Society has the same legal status as the Automobile Association or the SPCA.  We don't force motorists to join the AA before they can own a car or force pet owners to join the SPCA.

Student Unions were originally voluntary organisations and this bill returns student unionism to its roots.  Over recent decades they have become increasingly politicised when their core functions are meant to be representation of their student body - not just a select few, advocacy and the provision of some services.  The University and Polytechnic councils provide other services such as health and welfare services.

There has been much talk during the course of debate surrounding VSM about huge opposition from students with the figure of 98 percent frequently quoted by the Bill’s opponents.  Let's be very clear about this figure.  It refers to submissions opposing the Bill at Select Committee.  This was essentially a copy and paste campaign, like a petition, conducted by student politicians en masse.  By comparison a Stuff poll last October had almost 5,000 votes and showed 72 percent were in favour of voluntary membership.

Misappropriation of Students’ Association funds has become a significant problem in the past few decades.  The fraud has ranged from the farcical $6,000 spent by a VUWSA executive member phoning a psychic hotline through to the large scale embezzlement on several occasions at Whitireia Polytechnic totalling around $750,000.  These all too regular examples of fraud proved the need for action.  Compulsory membership has created an environment conducive to financial mismanagement.  Student Unions are governed and managed by young people who often lack the necessary management skills and experience to run a multi-million dollar business and a captive market of students who cannot vote with their feet if their funds are mismanaged.

Voluntary membership means associations will have to attract membership to gain funds then provide the representation and services students want in order to keep them.

There has been much talk in this debate about Australia’s experience of voluntary membership, or VSU as it’s known across the Tasman.  Those opposing the Bill have conveniently ignored the Student Unions that have not only survived but thrived under Voluntary membership.  The University of West Australia stands out as an example for the rest.  Amid the doomsday predictions promulgated by the left, they retained 60 percent of their members under VSU and have continued to provide valued services to their members.

Looking to the future in New Zealand my intention was never to destroy Students’ Associations, but to give students free choice of belonging or not.  I hope that associations will put as much effort into planning for the future as they have put into planning their protests.  I hope to see Students’ Associations actively promote the benefits of membership by:

• Using quality communication with students to find out what they want, preferably using 21st century communications, as students do;

• Conducting quality market research on what services students actually value and are prepared to join to access;

• Affordable membership fees;

• Innovative incentives to join, such as discounts for members at student association bookshops and cafes and negotiated discounts with local retailers;

• Focussing advocacy on those issues which almost all students agree on such as increasing the quality of education and increasing accountability of tertiary institutions to students.

When students see an organisation providing representation and services they value they are much more likely to join.

There are many people to thank and acknowledge in this journey which spans at least 20 years.  The battle started with the Freedom on Campus Network and has progressively been carried forward by Prebble's Rebels, ACT on Campus, the Young Nats, Student Choice and my ACT Party colleagues present and past.  I would like to also thank the Select Committee members so ably chaired by Allan Peachy and the Select Committee staff who dealt with the large number of submissions and submitters.  Thanks also to all submitters - both those supporting and those opposed to the bill.  As a result of your contributions several changes were made to the Bill that have made it much better.  To the officials from the Ministry of Education and PCO, my grateful thanks for your expertise, sage advice and most notably your cheerful patience to a process that ended up being much longer than was intended.

To Sir Roger Douglas, thanks for your Midas touch - I don't know anyone luckier at having bills drawn from the ballot and for shepherding VSM through the Select Committee process.  And my grateful and sincere thanks to the staff in my office who have researched, advised, written, agonised and become very good at understanding parliamentary process because of their absolute belief in and commitment to freedom.

It is harder to say it any better than Andrew Little in his final address as President to the EPMU:

“I believe voluntary unionism - true freedom of association - gives the union movement much greater strength and a much greater moral authority.”

My final thanks to the National Party Caucus and United Future for their support of Voluntary Student Membership.  Freedoms are hard won and so easily eroded.  Parliament’s gift to students tonight is freedom of association.  Please be sure to use it wisely.

Reinstating Youth Wage Is Realistic Option

ACT New Zealand MP Heather Roy today called on the Government to heed its own words and take a more ‘realistic’ approach to youth unemployment by reinstating the youth minimum wage.

“In response to my question on youth rates in the House today, Finance Minister Bill English replied that it has become apparent in the last couple of years that the long-held consensus that higher rates of pay for young people would not affect their employment prospects wasn’t realistic.  The ACT Party could not agree more with the Minister’s comments,” Mrs Roy said.

“ACT has always argued that in abolishing the youth minimum wage, the Government forced young people to compete against older, more experienced workers for the same rate of pay.  The skyrocketing youth unemployment rates show that employers are choosing experience nearly every time.

“The September 2011 Department of Labour report: The Impact of the 2008 Youth Minimum Wage Reform confirms what ACT has been saying all along.  The report found that abolishing the youth minimum wage ‘accounted for approximately 20-40 per cent of the fall in the proportion of 16 and 17 year olds in employment by 2010.’  The report goes on to say this led to a loss of 4,500-9,000 jobs for 16 and 17 year olds.  Scrapping the youth wage has clearly been a disaster.

“ACT believes that it’s important to give our young people a step up onto the career ladder, where they learn valuable skills and become productive citizens.  This sets them up for a successful career in the future.

“Rather than continuing to introduce expensive schemes which pay employers to take on young people who are not productive enough to compete with adults, the Government should simply reintroduce the youth minimum wage.  It’s the realistic thing to do,” Mrs Roy said.

Heather Roy's Diary

Retirement Age Unsustainable at 65

The Retirement Commissioner Diana Crossan says it frequently, former Treasury Head John Whitehead and current Treasury secretary Gabriel Makhlouf advised government it is so and well known economists Gareth Morgan and Bernard Hickey and others have also joined the chorus in recent weeks – New Zealand cannot afford to continue paying superannuation to kiwis when they turn 65. All believe the retirement age must gradually rise to 67.

ACT believes this too, but unfortunately no other political party will touch this hot potato in election year, or any time soon it would seem. Yet the fair thing to do is start a transition period now so that those it affects soon won’t be disadvantaged and younger kiwis can start preparing now.

New Zealand’s Superannuation scheme currently costs around 4% of GDP. This is relatively low for a western country but it is forecast to rise to 7.3% by 2035, and money to fund this has to come from somewhere. In 1950 the life expectancy of a pensioner was just 67.2 for men and 71.3 for women, meaning on average pensioners were only expected to live for around five years on superannuation. Today the age of eligibility remains the same, yet life expectancy for men is now 78 and women 82.

In fact it is clear from a wide range of experts that a retirement age of 65 is unsustainable.  Treasury has predicted that by the mid-2020s New Zealand would have to either increase GST to 19 percent or raise income tax by an average of $30 a week just to continue paying for existing entitlements.  Faced with such dire numbers the least parliament – both government and opposition - could do is consider advice on the matter. This is an important issue for our nation and economy and one that requires cross-party support and decisions that won’t be tampered with by subsequent governments.

At present everyone receives National Super at age 65 whether they continue to work or not.

The Retirement Commissioner is required to examine the government’s retirement income policy every three years.  Commissioner Diana Crossan lashed out at the government’s rejection of her review findings that the age of eligibility for NZ Super be gradually increased to 67 by two months a year up to 2033. She pointed out that politicians burying their head in the sand would not solve this looming problem. “It's crucial that we make changes now, so that today's 45 year olds and younger Kiwis are able to receive New Zealand Super in the future. Why wait until we have to raise the age suddenly in 10 years time? We can't keep ignoring this issue," Crossan said, and she is absolutely right.

The 2025 Taskforce in their most recent report also commented on this issue saying that “New Zealand should lift the age of eligibility for New Zealand Superannuation beyond 65, as Australia, the United Kingdom, the United States and other countries are doing, and also draw a clear link between life expectancy improvements and future increases in the eligibility age”.

I asked Finance Minister Bill English in Parliament yesterday whether former Treasury Secretary John Whitehead, Retirement Commissioner Diana Crossan and commentators Bernard Hickey and Gareth Morgan are all wrong in calling for the retirement age to be raised – as is being done by Labor in Australia – his answer was simply that these people “should run for office” if they wanted to have more say on the retirement age.

The Government pays experts like Mr Whitehead and Ms Crossan to give free and frank advice.  It is unacceptable for Mr English to tell them to ‘run for office’ merely because his government does not want to hear the home truths they are quite rightly telling him.

Internationally, New Zealand is totally out of kilter with how other nations are responding to ever increasing life expectancy. Australia will slowly lift the age of eligibility by 6 months every two years from 2017 so it reaches 67 in 2023, meaning everyone has time to prepare for the change. The UK will slowly lift their age to 68 by 2046 and the US will lift theirs to 67 by 2022.

Prime Minister John Key has repeatedly stated he will resign rather than put the age up. All demographic figures suggest that raising the age is inevitable and the very worst that the Government can do is delay the inevitable and leave the problem for future generations to deal with.  ACT believes that it would be far more caring for the Government to give retirees time to plan for their future by raising the age over a long transition period than it is to take the John Key “not on my watch” approach that we are left with at the moment.

Lest We Forget

This weekend I will be joining my Army Unit (5 Wellington, West Coast, Taranaki Battalion Group) for a Charter parade in New Plymouth. Each year at the beginning of August we commemorate the Battle of Chunuk Bair which took place between the 7th and 19th of August 1915. The assult on Chunuk Bair, which the Wellington Battalion played a crucial role in, was commanded by Lt Col. William Malone, from Taranki and who had ties to the Army Unit to which I now belong.

The Battle of Chunuk Bair was fought in August 1915 between the Ottoman defenders and troops of New Zealand and Britain on Gallipoli peninsula. The capture of Chunuk Bair, the secondary peak of the Sari Bair range, was one of the two objectives of the Allied August Offensive launched at Anzac and Suvla in order to break the stalemate that the campaign had become. The capture of Chunuk Bair was the only success for the Allies but success was short-lived as the position proved untenable. The Ottomans recaptured the peak after a few days and didn’t relinquish it again.

The assault on Chunuk Bair took place on 8 August. The fight raged all day until the trenches were clogged with the New Zealand dead. Around 5 p.m. Lt Col. Malone was killed by a misdirected artillery shell, fired from either Anzac or a British ship. As we parade in New Plymouth this weekend we will remember his contribution to our freedoms. The Army now has a scholarship scheme for Reservists in honour of Malone.

ENDS

Government Ignoring Advice On Retirement Age

ACT New Zealand Spokesman Hon Heather Roy today condemned Finance Minister Bill English for continuing his Government’s refusal to even consider raising the retirement age beyond 65 and ignoring, even ridiculing, the advice of several experts who are recommending raising the age.

“I asked Mr English whether former Treasury Secretary John Whitehead, Retirement Commissioner Diana Crossan and commentators Bernard Hickey and Gareth Morgan are all wrong in calling for the retirement age to be raised – as is being done by Labor in Australia – his answer was simply that these people should run for office,” Mrs Roy said.

“The Government pays experts like Mr Whitehead and Ms Crossan to give free and frank advice.  It is unacceptable for Mr English to tell them to ‘run for office’ merely because he does not want to hear the home truths they are quite rightly telling him.

“A retirement age of 65 is unsustainable.  Treasury predicted that by the mid-2020s New Zealand would have to either increase GST to 19 percent or raise income tax by an average of $30 a week just to continue paying for existing entitlements.  Faced with such dire numbers the least Mr English could do is consider advice on the matter.

“All demographic figures suggest that raising the age is inevitable, the very worst that the Government can do is delay the inevitable and leave the problem for future generations to deal with.  ACT believes that it would be far more caring for the Government to give retirees time to plan for their future by raising the age over a long transition period than it is to take the head in the sand approach that we are left with at the moment,” Mrs Roy said.

ENDS

Removing The Chronic Side-Effects Of Kronic Legislation

The Government is taking advantage of the Misuse of Drugs Amendment Bill to push through a ban on Kronic and Kronic like substances.

ACT believes that these substances should not be sold freely to those under 18. However adults, as owners of their own bodies and lives, should not have such a blanket ban imposed on them. Could the prohibitionists please cite one example where prohibition has actually worked? 

Click here for a copy of ACT's Supplementary Order Paper, containing our proposed amendment.

Fresh Ideas For A Productive Economy

Hon Heather Roy Speech to Fresh Ideas For A Productive Economy, Fabian Society Seminar; Legislative Building, Parliament; Wednesday, July 27 2011.

It has been said that the definition of insanity is doing the same thing over and over again expecting different results. If this is true then those governing New Zealand’s economy must be certifiable.

ACT believes that New Zealand needs more than fresh ideas, more of a revolution in the way we approach the economy. The current system is burying our country in debt.

The government is currently borrowing more than $300 million a week, $15 billion a year. Broken down that equates to $200 a week per household and a debt of around $3,900 for every man, woman, and child.

As we have seen overseas, this kind of borrowing is unsustainable. Greece found that out the hard way, Ireland found that out the hard way. ACT does not want New Zealand to fall into the same hole.

Labour would have us forget that it was their spending binge while in Government that got us into this financial quagmire - but now instead of focusing on ways to reduce Government spending Labour would prefer, as always, to simply tax us more.

National, who so bitterly howled when Labour increased wasteful spending, took over but could not find anything to cut. They are doing the same thing over and over again, expecting different results.

George Orwell, in his dystopian novel 1984, called this doublespeak – in 1948 this was fiction, today is passes for political discourse in New Zealand. We have lived with this doublespeak for a decade – it has been a decade too long.

ACT has long called for fresh economic ideas, but as Audre Lord said, “There are no new ideas. There are only new ways of making them felt.” What we need is a fresh way of looking at the economy.

If we just reduced government spending, adjusted for inflation, to the level it was in 2005 we could balance New Zealand’s budget. The public service needs to examine its priorities and goals so that we can live within our means.

It is important to examine what the trade-offs are with high government spending. There is a study of 40 years of OECD data that looks at the relationship between public expenditure and economic growth. It finds that countries that spend less than 25 percent of GDP through government achieve average growth rates of 6.6 percent. Governments that spend 50-60 percent of GDP achieve, on average, 2 percent. In the year ended June 2011 total Government expenditure was forecast, in Budget 2011, to spend over 48 percent of GDP.

Why should we be concerned with growth? The difference between 2 and 5 percent growth over 50 years is massive. A country that grows at 5 percent will be 4 times richer in 50 years than the country that grows at 2 percent.

A wealthy nation has the capacity to afford top quality healthcare, a pristine environment, and decent education for their young people.  However, those that benefit the most from growth in the economy are the poorest in society – individuals who are reliant on the jobs and higher wages that come from growth in productivity.

If we are willing to look, we can identify the formula that will bring productivity and growth. Let’s look at Singapore. New Zealand GDP growth in 2010 was under 1 percent. Singapore grew at a amazing 14 percent.

This is made even more remarkable when you consider that in 1960, our GDP value was almost 3 times that of Singapore. In the last 20 years, Singapore has raced ahead, by 2015; Singapore will have a GDP value that is 3 times that of New Zealand.

If we are to look at labour productivity per capita in New Zealand dollars Singapore labour productivity in 2010 was $182,546 per person, almost twice New Zealand’s $93,365. Why have they been able to achieve such prosperity with no minerals, no land and a relatively small population? It is because they were willing to make tough decisions.

Government expenditure accounts for only 17% of GDP in Singapore, compared to New Zealand’s 48%.

Most importantly, their politicians have a vision for the future, they put aside short-term political gains and focus on the future – in short they had the courage to do what was right. They outlined a blueprint of where they want to go and they moved swiftly to achieve it. In doing so, Singapore has left New Zealand in the dust.

We should be concerned; no, we should be outraged that we are condemning our children and grandchildren to be relatively poorer than they need be.  Worse still, we are saddling them with tomorrow’s public debt that we ourselves are not willing to pay today. Our children ready leave New Zealand for countries where opportunities are greater and taxes are lower. These are likely to be countries where the government does not spend 48 percent of GDP.

ACT does not, however, support a policy of “slash and burn”. We can’t start indiscriminately getting rid of services but we must examine the benefits that this spending has in the short term. Have we actually got value for the money we spend?

In New Zealand, although we spend half of our GDP on the public sector the results are far from favourable.  In healthcare, over the five years till 2009 we increased spending by over 50 percent in inflation-adjusted terms. Of course it sounds good to spend more on healthcare, but what were the results? Productivity actually decreased – doctors by around 15 percent and nurses by around 11 percent. That means despite an increase in money we are in a relatively worse position than we were before.

The only area in which productivity actually increased in the New Zealand healthcare sector was in cleaning staff – this has been outsourced to the private sector.

In education the same is true, again spending has rapidly increased, yet the results have been poor. Tragically 25 percent of children who leave school are functionally illiterate. How can this be when, on average, by the time a child leaves school, they have had $70,000 spent on their education? How is it that we cannot educate so many even to a basic standard?  Not only are we condemning our children to a debt-laden future, we are depriving them of the tools to fix it.

At the moment the government is throwing good money after bad. We cannot continue to spend with no thought about the outcome, with no thought to the growth of the economy. To fix this, we need to tackle the three biggest areas of government spending – education, welfare, and health.

Let’s look at some different solutions to healthcare that I believe would turn around the poor results.

Under Labour we saw the introduction of greater scheme of universal care. This meant that rich parents in Epsom and Remuera could get primary healthcare fully subsidised. It is crazy that we should not target the provision of services based on need. Those that can afford it should have to pay for their own healthcare costs. When Government, not the individual, pays for healthcare we see that consumers have poor incentives to seek value for money, the doctor has poor incentives to provide cost-effective treatments, and the taxpayer has to meet the increasing costs of healthcare. This is why in the long-run productivity fails. We would target subsidised healthcare to those who need it, not those who want it.

Second, following on from the first, if we look around the world we can see that pouring money into the system is not what we need – what we need is to restore incentives. Singapore has one of the best healthcare systems in the world. Infant mortality rates and life expectancy are amongst the best in the world. However, what makes it amazing is its cost effectiveness – the government spends very little money making it a good system. The Singapore government spent between 1 and 3 percent of GDP annually. To contrast, New Zealand spends around 9.8 percent of GDP – that is over 20% of all the money that the government directly spends.

A different way of funding healthcare, as happens in Singapore, is to have a health savings account in which individuals pre-save for medical expenses. The government also offers an option of taking out catastrophe insurance – it will pay for any medical procedure over approximately $10,000. The real key is they allow for the private market to operate providing both hospitals and insurance. These compete with the public hospitals making them more competitive. The government even requires these private hospitals to publish pricing lists to encourage comparative shopping. The real point here is it balances incentives – the individual can make a trade-off between medical care and the cost. This is missing at the moment in New Zealand.

Growth in productivity is not a result of working harder or working longer but working smarter. No one would accuse New Zealand of not being a country filled with hard-workers. Encouraging people to develop methods of producing goods in more efficient ways is the key. The focus needs to be on increasing our productivity, making our businesses more competitive and revitalising our economy.

Cutting a dollar of government waste releases that dollar to be usefully employed elsewhere. Cutting government waste has real benefits to the ordinary person – be it in higher wages, better jobs, or better goods and services.

It is not often an MP stands before you and advocates for smaller government. ACT believes that the boldest move, the only real game-changer for New Zealand’s economy is to downsize the bureaucracy.

Why do our politicians lack a vision for New Zealand? Why do we no longer aspire to anything? Labour no longer talks about being in the top half of the OECD and National no longer talks about beating Australia by 2025. We are trapped by the tyranny of the status quo. We no longer aspire to excellence, but expedience.

ACT sees the possibility of greatness in New Zealand’s future. We believe that, with fewer bureaucrats and smaller government, with lower taxes and increased productivity, with improved education and freedom of choice, New Zealand can both aspire to, and achieve, greatness.

What it takes is a vision and a plan – because without a plan, vision is nothing more than a dream.

ENDS

Heather Roy's Diary

TINKER, TAILOR, SOLDIER, SPY

Truth, they say, is stranger than fiction. The Israeli spy fiasco that has led the news for the past few days is a plot Le Carre might be tempted to write, or perhaps more likely, not even have entertained for its incompetence.

So what is really going on?  The story started this week with the revelation that a young Israeli was killed in the February 22 Christchurch earthquake. Initial reports said the dead man had 5 passports and his three backpacking companions had fled the country within 12 hours because they were all spies. As the week progressed it transpired that he really had two passports – one Israeli, one European - and his three friends had handed his Israeli passport to the Israeli Ambassador on their way out of the country.

By Friday morning the news reports were this:

Among the further mysteries that emerged yesterday was confirmation from Key's office that Michal Fraidman, Guy Jordan and Liron Sade left Christchurch on one of the earliest flights out after the February 22 earthquake, on an air force 757.

They were met at Wellington Airport the next day by a local police officer, who questioned them about the identification of their dead friend Ofer Mizrahi, according to an Israeli woman who lives in Christchurch and met the three in an emergency shelter at Hagley Park on the night of the quake.

So, it would appear that after investigation approved by the Prime Minister that the group really were what they said – backpackers, not Mossad agents.

There has also been much speculation about the Israeli Search and Rescue team. On Thursday the Prime Minister’s office said that the SAR team was escorted from the Christchurch CBD ‘red zone’. On Friday however the team manager has said that they never entered the ‘red zone’ and so were never evicted. The team manager has been open about his prior involvement as a special operations paratrooper and his service in the Israeli intelligence community but this just appears to have fuelled the ‘spy ring’ rumours. It may be that the SAR team was turned away because it was made up of army personnel.

One thing overlooked by the conspiracy theorists is everyone serves in the military in Israel, including the women. So to have excluded them for that reason is extremely short-sighted, if not ignorant. New Zealand SAR teams have commented on how efficient the Israelis were in finding all their nationals and identifying three Israeli citizens killed in the earthquake.

Add to the mix the more recent suggestion that someone within the New Zealand SIS may have leaked information which revealed concern at the agency about Israeli spies operating in Christchurch. It was a journalist at the Southland Times who seems to have had the scoop on this bizarre story. Prime Minister John Key has ordered an inquiry.

The story broke while the Prime Minister was travelling in the United States and his initial and subsequent comments to media were confused. Although the opposition has made much of cover-ups it is more likely that the PM didn’t have all the information he should have. Prime Ministers don’t take kindly to not being fully briefed and particularly when information they don’t have finds its way to the media. They also have a great dislike of any threat to international relations harmony and the disquiet of the Israelis is embarrassing to the nation.

Like any good espionage novel, the story will eventually be told now that it is in the public arena. But one thing shouldn’t be forgotten – not all Israeli’s are spies, just as not all Australians wear hats with bobbling corks and not all Kiwis are sheep-shaggers.

The last word goes to the Kiwi SAR team member embarrassed at the treatment of the Israeli team. "I've got to say, over the last few days with all this spy rubbish, I feel ashamed to be a Kiwi, mate."

Lest We Forget - 22 July 2011 Carisbrook's Last Test

On Friday the All Blacks played Fiji in what was the last test ever to be played at Carisbrook - the famous Dunedin Rugby field where most Otago University students have spent at least a little time on the Terraces. It was also one of the few fields where the really hard up or fugal could sometimes get a view from the Scotman's Grandstand, the elevated roadside outside the ground.

Carisbrook was named after a castle in the Isle of Wight for James Macandrew, a colonial settler in Dunedin. The sportsground was developed during the 1870s and was first used for international cricket in 1883, when Otago hosted a team from Tasmania. Rugby union internationals have been held at Carisbrook since 1908 and full cricket internationals since 1955.

Home to the Highlanders, Carisbrook will be fondly remembered when future tests are played in the new Dunedin Stadium.

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